Garden State Patriot

Senate Republicans are warning about several provisions of the Corzine FY2010 budget which pose grave threats to our state’s economy.

A Partial List of ‘Governor Deficit’s’ Time Bombs for Taxpayers

Republican Senate Budget Officer Anthony Bucco warned that passage of Governor Corzine’s 2010 budget will pave the way for the worst budget crisis in state history. Effects of this crisis will be felt for years, Bucco predicted.

“New Jersey state government will face the worst, most devastating fiscal crisis in its modern history starting next year,” Senator Bucco said. “To create the illusion of a lower budget, Governor Corzine has deferred billions of dollars in expenses that will create unprecedented deficits. We should not approve this fiscally irresponsible legislation.”

“Governor Deficit’s” time bombs for taxpayers include:

· The Corzine Pension Deficit – Governor Corzine’s budgets have underfunded the pensions off teachers, police officers, and other government employees. The total during his administration, including for fiscal 2010: More than $7.5 billion. This includes $6.5 billion in unpaid state contributions, and incredibly irresponsible legislation this year that allows municipalities to defer more than $1 billion in payments to the funds.

· The Corzine Federal Aid Deficit – Governor Corzine has relied on $2.2 billion in one-time federal stimulus aid to create the illusion he is cutting that much in spending. He didn’t cut this spending. He merely used federal aid to pay state bills. Next year, that federal money will not be available. The governor hasn’t provided an answer on how he will fill this $2.2 billion addition to next year’s deficit

· The Corzine ‘Temporary’ Tax Deficit – The governor is relying on more than $1 billion in tax increases this year that he is labeling “temporary.” He is raising the income tax and eliminating the deductibility of property taxes for many middle class residents. Again, the governor hasn’t told legislators what he plans, if anything, to eliminate this $1 billion hole next year.

· The Corzine Property Tax Rebate Deficit — More than 1.7 million New Jersey homeowners who got rebates in the past will not get them. The governor says the cancellation of rebates is temporary. He doesn’t say where he will find the $1 billion needed to restore them.

· The Corzine Unemployment Fund Deficit – Governor Corzine will borrow $1.6 billion from the federal government because of past raids on the unemployment benefit fund. He has no announced plan for how he will pay this loan back.

· The Corzine Debt Service Deficit – The governor will skip $450 million of payments on bonds next year. He hasn’t said one word on how much extra this will cost taxpayers over the long haul, or where he intends to find the money to pay for the borrowing in the future.

· The Corzine Biden Buyoff Deficit – The governor has promised a 7 percent pay increase to state workers, half that will come 12 months from now and the other half in 18 months. This will cost the state $350 million. Again, the Governor has committed to a plan that will cost taxpayers for decades without finding a way to pay for the expense.

Of course, it would be nice if lawmakers could actually see a finished product of the budget before voting on it. So, much for the transparency Corzine promised us as well.

(h/t Alice’s Restaurant Blog)

Cross-posted at Red County.